Tuesday, September 15, 2009

Now Interest Rate Futures can be traded in National Stock Exchange

After a gap of six years, the National Stock Exchange (NSE) of India re-launched trading in Interest Rate Futures. This will give the investor an opportunity to speculate and trade with these advanced financial instruments.

Interest Rate Futures allow institutions to hedge risk associated with interest rate fluctuations. They can reduce the risk associated with cash flows resulting from underlying assets such as home loans, long term fixed deposits etc.

However, in India, the underlying asset on which the interest rate future is based on is a 10 year notional coupon bearing government security. Have a look at this small series that came in ET, which talks about few things one has to consider before trading in interest rate futures.

8 comments:

Saoirse said...

I recently came accross your blog and have been reading along. I thought I would leave my first comment. I dont know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.


Patricia

http://forextradin-g.net

jourge said...

Hope the National Stock Exchange(NSE)new trading "Interest Rate Future" policy will successful so that investor can easily speculate & trade by these tools. Alliance & Leicester Cashback

Anonymous said...

Thanks for the blog. Please write some blogs on following topic:
personal finance, investing etc. Or send me some link of these blogs.


FIX Bytes

Simon Greenwhich said...

The re-launching of the trading in Interest Rate Futures will surely give more benefits among investors. I wonder if this would also affect investments coming from the binary options trading.

Options Trading said...

Your topics are indeed very useful especially for those who have limited knowledge about business and investments.

Stocks and investments said...

Thank you for such a fantastic blog. Where else could anyone get that kind of info written in such a perfect way? I have a presentation that I am presently working on, and I have been on the look out for such information.

Limon Smith said...

If you are searching for a stock market data feed, you need to stop now and check out Barchart Market Data Solutions. This data feed solutions provider has reliable feeds that you can use on a daily basis without fear of inaccuracy! These feeds can also be integrated onto websites. If you are curious how they look before you purchase the software, you can download files of their sample data. You won’t be disappointed – this is the best data feed solutions provider I’ve used.

Pratiksha Jadhav said...

I really appreciate your post and you explain each and every point very well. I read your blog and then i realize that you provide an awesome information and i appraised your blog posting's content. I would like to introduce a company that PLIndia is the leading equity trading firm in India.